Bitfloor's Bitcoin exchange back online following hack earlier this month

Bitcoins are virtual currency that can be exchanged for goods and services. Currently, one Bitcoin represents around $12 in value. Earlier this month, the Bitfloor Bitcoin exchange was hacked with 24,000 Bitcoins being stolen coming to approximately $250,000 in value.

BitFloor are now back online, with founder Roman Shtylman saying that he intends to payback the victims whose Bitcoins were stolen.

How long that will take I don’t know. Certainly for me this is a long-term plan, and I’m mostly doing this because I feel it's important to try and be clear of my intention to try and recover the coins.

Bitcoin exchanges are prime targets for hackers, simply because of the service provided. All transactions are publicly recorded and users have 32 character alpha-numeric addresses which are used to transfer funds. With both the sending and receiving addresses available to see on websites such as Blockchain.info, it is evident that the hacker has neither transferred nor spent any of the funds. To transfer Bitcoins to cash, a person’s name and bank account details are required, making it quite simple to trace a thief.

Shytlman has said that the hack, although devastating, was his fault. He left the private keys needed to unlock and transfer Bitcoins on an unencrypted disk. He did go onto add:

Most users and existing members of the community have been very supportive and wanted to see BitFloor come back online.

Let us know if you use Bitcoin, or know people that use it and if you were affected by the hack?

Source: CIO | Image: BitcoinMe

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4 Comments

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Yay, how often does this happen? Those coins arent easy to replace.
Ah well, bitcoins never really gonna work. Foolish people spent so much time and effort in it.

And before anyone starts 'but it does work' blabla.
It only works in a perfect world where humans are not greedy filthy pigs.
Unfortunally, the general population are greedy filthy pigs.

Shadowzz said,
Yay, how often does this happen? Those coins arent easy to replace.
Ah well, bitcoins never really gonna work. Foolish people spent so much time and effort in it.

And before anyone starts 'but it does work' blabla.
It only works in a perfect world where humans are not greedy filthy pigs.
Unfortunally, the general population are greedy filthy pigs.

Clearly you don't know where to use them.